Government raises petrol price by Rs2.73 per liter

Late on Thursday, the interim government announced an increase in petrol prices by Rs2.73 per litre for the upcoming two weeks. Consequently, the new price stands at Rs275.62 per litre, marking an increase from the previous rate of Rs272.89, as communicated by the Finance Division. Furthermore, the price of high-speed diesel (HSD) has been raised by Rs8.37, reaching Rs287.33 per litre.
The Ministry of Finance, in a late-night statement, stated that adjustments in the prices of petroleum products have been made for the fortnight starting February 16, as recommended by the Oil and Gas Regulatory Authority (Ogra). However, there were no modifications mentioned for the prices of kerosene oil and light diesel oil.
The price hikes were anticipated due to elevated international prices and import premiums, which offset the effects of minor gains in the exchange rate. Officials reported an increase of approximately $1.20 per barrel in the price of gasoline and about $3.5 per barrel in the price of HSD over the last two weeks.
Despite a marginal appreciation of the rupee against the dollar, the premium paid by Pakistan State Oil for procuring product cargoes slightly increased for petrol while remaining unchanged for HSD. The government has already reached the maximum petroleum levy limit of Rs 60 per litre, as mandated by law, on both petrol and HSD.
Furthermore, the government is charging Rs82 per litre in taxes on both petrol and HSD. While the general sales tax (GST) on all petroleum products remains zero, a Petroleum Development Levy (PDL) of Rs 60 per litre is applied to both products. Additionally, a tax of Rs 50 per litre is imposed on high-octane blending components and 95RON petrol.
Petrol and HSD contribute significantly to revenue generation, with monthly sales ranging from 700,000 to 800,000 metric tonnes, in stark contrast to the meagre sales of kerosene.